Bitcoin whales guide BTC price around $25,000, and caution is needed, analysis warns.
Bitcoin
BTC
tap away
$23,382
spent another day handling $25,000 on February 20, as analysts continue to warn of market manipulation.
Bitcoin backed by “Notorious B.I.D.”
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is making up losses from around the week close to re-approach the $25,000 mark at the time of writing.
However, bulls still failed to trigger a resistance-support reversal, and whale activity in exchanges kept suspicions high.
In its latest update, monitoring of material resource indicators revealed that high-volume traders are artificially “diluting” resistance overhead, making BTC/USD more likely to move higher.
Co-founder Keith Alan referred to a wall of bidding fluid promoting spot pricing, something he called the “Notorious B.I.D.” mentioned
“Several rejections of $25k correlate perfectly with BTC macro TA which is a valid reason to TP at these levels, but Notorious B.I.D. keeps trying to raise price,” reads a tweet.
“Based on history and the potential to break through upside illiquidity, I’m still bullish.”
Material Indicators added: “From a TA perspective, this should be a local top, but Notorious B.I.D. is still busy with the binance order book.”
“They are spreading BTC ask liquidity from the range of $25k – $25.5k into the active trading zone, thus reducing resistance,” also read part of a comment.
A possible plan among such traders could be to trigger a large price run, causing retail investors to pile in or go long, then stall as whales pour BTC into the market at higher levels.
China could boost crypto from a “liquidity junkie”.
With US markets closed for a holiday, one analyst meanwhile turned to longer-term implications of moves from China.
Related: ‘Back’ To $20K? 5 things to know in Bitcoin this week
In addition to allowing Hong Kong retail investors access to previously banned crypto, China’s central bank injected a record $92 billion of liquidity into the economy on February 17.
“While most analysts are focused on how the Fed’s tightening will reprice risk assets this cycle, they are not considering the extent of easing in the east,” argued the popular Twitter account Tedtalksmacro in a thread.
It explained that unlike the US, where the Fed withdraws liquidity through quantitative tightening (QT), China is doing the opposite. In 2020, under the Fed’s COVID-19 quantitative easing (QE), risk assets, including crypto, experienced an 18-month bull run.
“Crypto is not tied to any particular economy or entity, but rather is a liquidity junkie – it longs for the risk-averse investor to get cash and ride the fastest horse. This will be exactly what will happen in China this year,” he continued. the thread
As reported by Cointelegraph, US liquidity is already a major talking point when it comes to crypto asset performance, with Arthur Hayes, former CEO of derivatives giant BitMEX, predicting that the downside continues into the second half of 2023.
“Obviously not all the cash injected by the PBoC [People’s Bank of China] will end up in risky assets. But I’ll bet a decent portion of it!” Tedtalksmacro has closed though.
“Just as we saw from the West in 2020, increased central bank liquidity = prices of risky assets (like BTC) rise.”
